AUD Bounces from Lows as Markets Await Fed Minutes
The Australian Dollar (AUD) has made a modest bounce from its intra-week lows against the US Dollar (USD), but still remains bearish on the daily chart. The AUD/USD pair found support at 0.7065 and briefly touched 0.7080, but is struggling to regain momentum above this level.
The USD is experiencing some weakness as investors await the release of the Federal Reserve's minutes from July's monetary policy meeting, which could provide further guidance on the bank's near-term plans.
Analysts at ING suggest that while the minutes may contain a few hawkish references, they do not expect them to be a 'game changer' for the USD. Instead, ING experts believe that upcoming economic data and the end-of-month Jackson Hole symposium will have a greater impact on the Federal Reserve's decision-making process.
The Aussie is still weighed down by risk aversion and lower wage growth figures in Australia, which are providing an additional bearish impulse to the currency. Despite this, Brown Brothers Harriman's Elias Haddad notes that 'Australia's attractive carry alongside the country's strategic exposure to commodities linked to energy, AI, and defense remain key AUD tailwinds.'